Life is unpredictable; things happen suddenly. One moment, everything seems perfectly normal, and the very next moment can turn your world upside down. Accidents are one such moment that can turn your world around. According to the National Crime Records Bureau, road accidents alone accounted for 44% of the total accidental deaths in India. In 2022, India recorded the highest number of road fatalities, about 1.68 lakh. Road accidents occur due to the conditions of the roads in many major cities in India, which present a dismal picture with traffic jams and potholes visible everywhere. Hence, the risks of road accidents are high. While road accidents are the biggest killers, personal accidents can happen due to a broad range of mishaps, for instance, injuries from accidental burns (according to the WHO, 1 million people burn every year), electrical shocks, drowning, natural calamities, etc.
Such sudden incidents are unforeseen, do not come with a warning, and can affect you emotionally and financially. And, while you are dealing with the accident, finance is the least that you would want to worry about. Especially if you are the breadwinner of the family. So, while we cannot foresee such events, we can certainly be prepared for them. And here comes personal insurance to your rescue!
What is Personal Accident Insurance?
An accident insurance policy provides a much-needed financial cushion during unforeseen emergencies. It provides you and your family financial protection in case of an accident that leads to death, disability, temporary or permanent total disability, permanent partial disability, body injuries, and loss of speech or senses. Thus, it is vital to have personal accident insurance, as it offers peace of mind and ensures you and your loved ones are financially protected during unexpected and challenging times caused by accidents.
Types of Personal Accident Plans
There are two main categories of personal accident insurance plans. You can either opt for an individual plan or a group personal accident policy:
Individual Personal Accident Insurance: As the names suggest, the individual personal accident insurance will cover only one person. It is tailored to an individual’s specific needs. The premiums are based on personal risk factors such as health status, age, and occupation. The plan allows customizations and add-ons, remains with you regardless of your employment status, and claims are processed individually. The plan benefits are paid directly to the insured or their beneficiaries.
Group Personal Accident Insurance: Usually, group accident cover is offered by employers to their employees under a single master policy. Group accident policies may have certain limitations and are standardized across the group. However, premiums are lower due to the shared risk among the group members, and the coverage is not generally portable if the policyholder leaves the group or organization.
What Are the Benefits of Personal Accident Insurance?
We have explained below the various reasons for buying a personal accident cover:
Hospitalization Expenses Covered
The accident victim must be immediately rushed to the hospital so that the damage from the injuries is controlled. A personal accident cover will ensure that the hospital bills are settled, as per policy terms and conditions, without any hassle.
Disability Cover
A permanent or temporary disability could arise as a result of a serious accident. A person who has opted for accident cover will receive coverage, as per policy terms and conditions, in cases of Permanent Total Disablement (PTD) or permanent Partial Disablement (PPD). It also covers Temporary Total Disablement (TTD); however, the minimum period of the disability should be four weeks. A certain percentage of the sum insured will be paid to the policyholder, as per policy terms and conditions, on a weekly or monthly basis in case of temporary total disablement like loss of limbs, fractures, etc.
Cover for Accidental Death
In case the accident victim loses his or her life, then the insurance company will provide compensation by paying 100% of the sum insured to the family of the deceased. Also, personal accident cover provides coverage for repatriation charges as well as ambulance and funeral expenses.
Optional Benefits
In addition to the above-mentioned benefits, the accident policy offers some optional benefits as well, such as a daily allowance, accidental hospitalization expenses, compassionate visits, temporary total disability coverage, and more. There are a plethora of the best accidental insurance policies available in the market, like ‘Secure’ offered by Care Health Insurance, which provides a wide range of coverage.
Hassle-free Claims
Availing of an accident cover is a hassle-free process as there are no prior medical check-ups involved. Furthermore, the claim settlement process is extremely easy. All that one is required to do is inform the customer support team with specific details, such as contact details, the date and time of the accident, etc. If you choose to get treated in a non-network hospital, your medical expenses will be reimbursed as per policy terms and conditions.
Child Education Benefit
In the event of the policyholder’s accidental death or total disability, the accident insurance coverage provides financial support for the education of the insured’s children. This ensures that the child’s education expenses are covered, helping them continue their education without any financial disruption.
Lesser burden on family
A personal accident can change a person’s life. While dealing with the loss of a loved one or looking after someone who becomes disabled due to an injury, it really becomes difficult to handle the financial burden of paying for medical expenses, especially for an average salaried person. A Mediclaim policy with an accident cover comes to the rescue in such situations by providing a range of covers like accidental hospitalization cover, permanent or temporary disability cover, etc.
Affordability
Personal accident plans are relatively affordable compared to other types of life and health insurance policies. It is important to opt for such plans if you are one of those people facing high occupational risk, for example, an industrial worker. By choosing such an insurance policy, you are minimizing the impact on your savings in the event of an emergency. The premium amount generally depends on the occupation of the policy buyer.
Tax Benefits
As per the old tax regime, purchasing personal accident insurance also provides the benefit of deductions under Section 80D of the Income Tax Act. Hence, you can protect yourself and save money on income tax with this insurance.
Wrapping Up!
Whenever you opt for a personal accident insurance cover, do remember to check for the exclusions. For instance, treatment for any pre-existing injury or self-inflicted injury is often not covered. Thus, policy buyers must evaluate their needs, consider the above factors, and thoroughly read the policy documents before buying an accident insurance policy.
Disclaimer: The above information is for reference purposes only. Kindly consult your general physician for verified medical advice. The health insurance benefits are subject to policy terms and conditions. Refer to your policy documents for more information.
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